IMF Vs. Eurozone As Euro Weakens

IMF Vs. Eurozone As Euro Weakens

The euro (EUR) is weakening against most of its major counterparts, as no major decisions were taken over eurogroup meeting. Most importantly, a disagreement between the International Monetary Fund (IMF) and the eurozone was revealed. During a press conference, Christine Lagard, IMF’s Managing Director persisted that Greece should return to their debt-to-GDP ratio target of 120% by 2020, while Eurogroup Chairman Juncker voiced his preference for that target to be reached by 2022. Following these developments market participants are becoming more and more risk averse.

Gold (XAU) is falling versus a strengthening US dollar (USD). The precious metal is currently trading just above 1725 US dollars an ounce, having started the week yesterday at 1734.39.

The Australian dollar (AUD) dropped below 1.0400 versus the US dollar (USD) overnight, and even though it managed to pull itself back, the price behaviour stills remains bearish.

OIL is testing the 85 US dollars (USD) a barrel level early in the US session. If the precious commodity manages to break-and-hold below 84.90 then this could pave the way for lower lows.